TIDMEBOX TIDMBOXE
RNS Number : 9244B
Tritax EuroBox PLC
15 June 2021
15 June 2021
CONSTRUCTION OF 93,931 SQM EXTENSION COMMENCES AT
MANGO DISTRIBUTION CENTRE , BARCELONA, SPAIN
Tritax EuroBox plc ("Tritax EuroBox" or the "Company"), which
invests in a high-quality portfolio of very large, prime logistics
real estate assets strategically located in Continental Europe,
announces the start of works on the 93,931 sqm extension to its
global distribution centre asset at Lliçà d'Amunt, Barcelona let to
Punto Fa S.L., trading as Mango, one of the world's leading fashion
retailers. All necessary permissions have now been obtained and
construction work will start imminently.
This state-of-the-art global distribution centre, which
distributes to Mango's worldwide store network, was acquired
off-market by the Company in September 2018 for a total
consideration of EUR150 million (excluding purchaser's costs),
reflecting a net initial yield of 5.0%, with the benefit of an
adjacent plot of zoned land providing scope to extend the
property.
The Company is financing the construction of the extension at an
attractive yield on cost of 8.8%, for an estimated capital
commitment of EUR31.5 million.
The extension forms part of the continued growth of Mango's
global e-commerce operations, combining the in-store and online
fulfilment functions, increasing this facility's gross internal
area to approximately 280,000 sqm, including mezzanine floors.
Practical completion is targeted for November 2022 and the
extension will be incorporated into the existing full repairing and
insuring lease that commenced in December 2016 on a 30-year term,
with break options in 2039 and 2042. The rent is subject to annual
upward only indexation.
The extension will be constructed to a BREEAM Very Good
standard. The Company and Mango are working together to install
solar panels to optimise and reduce energy consumption within both
the existing building and the extension to improve the property's
environmental performance. The Company will commission an updated
EPC on completion of the extension, which will therefore
demonstrate the future-proofing of this high-specification asset,
as well as enhancing both the rental income and its capital
value.
Alina Iorgulescu, Assistant Fund Manager of Tritax EuroBox,
commented:
"This key asset management initiative, at an attractive yield on
cost, underlines our ability to source acquisitions with embedded
upside potential. This extension will enhance both the rental
income generated and the capital value of the investment, whilst
improving its sustainability credentials, supporting the Company's
vision for sustainability and the delivery of secure long-term
income and an attractive total return to shareholders. Such a
significant extension to the property will allow Mango to continue
to grow its successful omni-channel retail business, demonstrating
its commitment to this prime location as well as reflecting the
value of this site.
By working proactively with Mango, a valued tenant partner, we
are delighted to fund this extension opportunity to accommodate the
evolving requirements of one of the world's leading fashion
retailers, helping to future-proof this high specification asset
that plays an integral role in Mango's global supply chain."
Toni Ruiz, Mango CEO, commented:
" It has been a difficult and unpredictable year for retail, but
thanks to the major commitment we have made to our online channel
over the last 20 years, we were well placed to adapt to the
challenging circumstances that the pandemic presented. We have
accelerated our digital transformation by implementing a number of
initiatives which substantially grew our online channels, recording
increases of around 100% in many of our major markets including
France, Italy or Portugal. Our online platform now delivers a
turnover of EUR766 million, 36% more than the previous year and
represents 42% of total group turnover, well in excess of the 24%
figure for 2019, which provides a huge competitive advantage for
our company moving forwards.
Our global distribution centre in Barcelona has been integral to
our ability to fulfil this significant spike in online demand, and
equally the forthcoming extension will be essential to us
delivering on our future growth aspirations as we continue to
invest in our digital transformation programme enabling us to
deliver to our customers a best-in-class omni-channel retail
offering."
FOR FURTHER INFORMATION, PLEASE CONTACT:
Tritax Group
+44 (0) 20 8051 5070
Nick Preston
Alina Iorgulescu
Jo Blackshaw (Investor Relations)
Maitland/AMO (Media inquiries)
James Benjamin
+44 (0) 7747 113 930
tritax-maitland@maitland.co.uk
The Company's LEI is: 213800HK59N7H979QU33.
NOTES:
Tritax EuroBox plc invests in and manages a well-diversified
portfolio of well-located Continental European logistics real
estate assets that are expected to deliver an attractive capital
return and secure income to shareholders. These assets fulfil key
roles in the logistics and distribution supply-chain focused on the
most established logistics markets and on the major population
centres across core Continental European countries.
Occupier demand for Continental European logistics assets is in
the midst of a major long-term structural change principally driven
by the growth of e-commerce. This is evidenced by technological
advancements, increased automation and supply-chain
optimisation.
The Company's Manager, Tritax Management LLP, has assembled a
full-service European logistics asset management capability
including specialist "on the ground" asset and property managers
with strong market standings in the Continental European logistics
sector.
Further information on Tritax EuroBox plc is available at
www.tritaxeurobox.co.uk
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END
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June 15, 2021 04:00 ET (08:00 GMT)
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